Turkish turmoil, Germany lockdown extension hit European stocks
(Reuters) – A slump in Turkey’s lira and worries about prolonged lockdowns in Germany pushed European stocks lower on Monday, with banks and travel shares taking the biggest hit.
The pan-European STOXX 600 fell 0.5% by 0806 GMT, down for the second straight session after hitting a one-year peak last week.
The global mood soured as the Turkish lira dropped to a record low after President Tayyip Erdogan replaced a hawkish central bank governor with a critic of high interest rates over the weekend.
Euro zone banks exposed to the country such as Spain’s BBVA, Italy’s UniCredit, France’s BNP Paribas, and Dutch bank ING fell between 1.6% and 5.2%.
Travel stocks also dropped as a draft proposal seen by Reuters showed Germany was set to extend a lockdown to contain the COVID-19 pandemic into its fifth month.
The German DAX was down 0.5%, while France’s CAC 40 fell 0.9% and UK’s FTSE 100 dropped 0.8%.
British home improvement retailer Kingfisher rose 3.6% after it reported a 44% jump in full-year profit, driven by the popularity of do-it-yourself (DIY) projects.
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